Tata Motors is likely to set up an automobile unit at the Gopalpur SEZ Industrial Park, which has been developed by Tata Steel.

“Talks are going on with Tata Motors to set up an automobile unit at the Gopalpur SEZ in Orissa,” said a senior executive of Tata Steel.

He said Tata Steel … plans to manufacture finished products for the automobile industry.

“Obviously we would like to have Tata Motors set up its unit at the Gopalpur SEZ Industrial Park,” the chief resident executive of Tata Steel in Orissa, Rajesh Chintak, told FE. He said that the proposed industrial park will have a separate zone for the automobile and the auto-component industry, adding that the park is now generating a lot of interest among investors.

Chintak also said that the company is now concentrating on developing the park. Once the infrastructure is ready a clear picture of the possible investments will emerge, he added.

The Orissa government, in fact, is lobbying with the Tatas to set up an automobile unit in the Gopalpur SEZ. Even when Tata Motors withdrew the Nano project from Singur, the Orissa government tried to convince the automobile company to relocate the unit in Gopalpur.

Tata Steel, which is developing the SEZ Industrial Park over an area of 3,700 acres is proposing to set up a ferro-alloys plant with a capacity of 50,000 tonnes and a 4-lakh tonne cold roll re-bar mill with an investment of R10,000 crore to R15,000 crore as anchor tenant.

The managing director of Tata Steel HM Nerurkar … said the Gopalpur Park has received SEZ status. He said that the construction work for the project would be started once the statutory clearances like the environmental clearance are obtained.

The managing director said the first phase of the Kalinga Nagar steel plant will be operational by January or February 2014.

… A high level delegation of the state government which was recently on a visit to Pune, the hub of the country’s automotive industry, has got some positive signals from the auto majors.

"Tata Motors, Fiat and John Deere have evinced interest in setting up their manufacturing bases in Orissa. These auto majors have assured us that the would definitely keep Orissa on their investment radar while pursuing their expansion plans and this is a positive development”, C J Venugopal, chairman and managing director of Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) told Business Standard.

Apart from Venugopal, the state industries secretary Saurabh Garg; chairman and managing director of Industrial Infrastructure Development Corporation of Orissa (Idco) Priyabrata Pattnaik and veteran business leaders of the state who were part of the delegation, made a detailed presentation to the prospective investors.

We have asked the prospective investors in the auto sector not to be carried away by the negative publicity surrounding the projects of Posco and Vedanta. Our objective was to sensitize these investors who had never considered Orissa as an ideal investment destination for auto manufacturing. Once, we convince the big auto manufacturers to set up their manufacture ring bases in the state, the auto ancillaries will automatically follow”, he added.

The high profile delegation highlighted the strengths of Orissa including the state’s stable political climate, enabling infrastructure, consistently healthy GDP growth for the past few years, availability of cheap and productive labour and low incidence of labour unrest.

It is our earnest endeavour to diversify the state’s investment base and getting the auto majors to invest is the first step in this direction, Venugopal said, adding, “we are making efforts to get investors in sectors like automobiles, chemicals and food processing as the state has already attracted large number of investors in sectors like steel, aluminium, power and .”

The Orissa government today signed a memorandum of understanding (MoU) with Amtek Metal & Mining Ltd (AMML), for setting up a mega auto park with an associated two million tonne per annum (mtpa) integrated steel plant and 500 Mw power plant at Tangi in Cuttack district.

The project envisaging an investment of Rs 15,820 crore, is expected to generate direct and indirect employment for 33,000 persons. Out of the total projected investment, Rs 2050 crore is proposed to be invested for mega auto park in phases.

While the total land requirement for the projects is estimated at 2500 acres, about 550 acres will be required for the mega auto park. … AMML’s project consists of ferrous foundry, steel forging plants, steel fabrication plant, open die forging plant, special fastener, aluminium die casting plant, alloy steel plant and ring gear blank plant among others. It would transfer the hot metal from blast furnace to auto park for production of auto components.

… “With the signing of the MoU, we expect greater interest from the national auto industry which will help create an auto hub in the state”, Patnaik remarked. Taori said, the company would adopt ITIs and the polytechnics in the state to impart skill training to the unemployed youth in Orissa.

Amtech Auto Engineering would set up the complex at an investment of Rs 15,820 crore near Tangi- Choudwar. It would set up a two million tonne steel plant and 500 MW captive power plant in the complex. With this about 33,000 people will get both direct and indirect employment.

It may be mentioned here that Jamsedpur-based RSB Trasmissions (I) Ltd, one of India’s leading auto components manufacturers, is coming up with an auto complex at Mania in Cuttack. RSB Transmission will invest Rs 430 crore in the project.

The committee also approved JK Cement‘s one million tonne capacity plant on the road between Athagrah and Choudwar.

BOC would set up an air separation plant at an investment of Rs 434 crore in Rourkela. It would produce oxygen, nitrogen and argons.

Bijaya Ferro Power Private Limited would set up a power plant at Keshinga in Kalahandi with an investment of Rs 550 crore. It would take water from Tel river to produce 120 MW power.

Ind-Bharat’s proposal to enhance its power production capacity has also got the nod of the committee. It would set up its plant at Jharsuguda with an investment of Rs 3,300 crore.

Facor would set up its captive power plant at Rahandia near Bhadrak.

Due to shortage of water, few plants have also changed their sites. Odisha Cement Power Plant (OCL) has shifted its plant site from Mania to Rajgangpur.

Jinadal Stainless Steel would set up its plant in Luni instead of Gajatara in Dhenkanal.

Kalinga Energy Power Limited would set up its plant at Jharsuguda instead of Sambalpur.

Scwal Brewage would set up its plant at Baranga instead of Choudwar at a cost of Rs 193 crore.

The Rs 1,320 crore Sahara Power project has shifted its plant to Ghantabahal from Turul.

German-based Gaunteman Pipery would set up its plant beneficiation plant and pelatisation plant. The beneficiation plant would come up at Barbil and the pelatisation plant at Dhamra. Around 1,605 crore would be invested in the project.

Aditya Alumina’s proposal to enhance its production from one million tonne to 1.5 million tonne. It would also enhance its power plant from 650 MW to 900 MW.

The projects of Adhunic Metalics and Jindal Stainless Steel at Sundargarh and Kalinganagar, respectively have been approved. The SWCLC has also given its green signal for an air-separation plant. Projects, involving Vijay Ferrochorme and Power Pvt Ltd and Adhunic Power plant have been cleared.

Amtech Metals would establish the integrated auto-complex, first of its kind in the state. Moreover, an auto-park, steel and power plant would also be established in the complex. The cost of the entire project has been pegged at Rs 15,820 crore. All the projects are expected to provide direct and indirect employment opportunities to nearly 47,000 and 1.5 lakh people, respectively apart from bolstering the socio-economic conditions in those regions where the proposed projects would come up, state Industries Secretary, Sourabh Garg said.

Adhunik Power & Natural Resources Limited (APNRL) has proposed to invest Rs.3883.40 crore for the 4×250 MW power plant in Birmaharajpur in Sonepur district.

… Adhunik Metaliks Limited (AML), another member of the Group has proposed to set up Down Stream Park for stainless and special products with an investment of Rs.286 crore. … downstream industries in hot-rolling, cold-rolling utensils, kitchen and hardware. AML has also proposed for stainless steel pipes and alloys, which received the nod.
The park will be set up at Kumarmunda in a 300 acre area in Sundargarh district.

AML is setting up steel plant at Kumarmunda with a capacity of 0.41 million ton per annum (MTPA).

JSL Limited posed a proposal to set up a Super Critical Thermal Power Station of 1320 (660X2) megawatt capacity, which has been cleared in the meeting. The Rs.4090 crore Greenfield project will be set up at Luni in Dhenkanal district.

Most importantly JSL, which is setting up a 3.20 million ton per annum (MTPA) capacity stainless steel plant at Kalinga Nagar has proposed to set up Stainless Steel Park (SEZ) with an investment of Rs.740 crore. … The park will promote auto components, kitchen & life style, light engineering, white goods, cold rolling, pipes and tubes, and service centre. 300 acres of land for the park is needed for the park, which will have man power requirement of more than 2000, said sources. JSL plant is likely to produce stainless steel by end of 2010 and the park is also to be completed by the same time reveal the SLSWCA Report.

The above two downstream park proposals are most likely due to the recent government focus on those aspects, before giving mining leases. The govt. needs to make sure that the down stream parks indeed materialize as proposed.

Laying the foundation stone of RSB Groupís auto-component complex at Choudwar, Patnaik said the Industrial Infrastructure Development Corporation Limited would set up the industrial park that would house several auto-component manufacturers at Choudwar area of Cuttack.

The chief minister added his government would soon announce a policy for development of small and medium industries.

RSB group, a leading engineering and components manufacturing company is setting up Rs 360cr multi-product automobile component manufacturing project near Choudwar over 300 acre.

The project, to be set up in phases over five to seven years, would consist of a forging unit, an iron-casting unit, aluminium die-casting unit, machine shop and assembling unit. The casting and forging unit is expected to generate an estimated annual turnover of Rs 1,600cr by the end of fifth year and would generate employment for 2,500 people by that time.

Group chairman R.K. Behera said the project would cater to the requirement of Tata Motors. …
Ramakrishna Forgings, an Indian firm manufacturing auto components has expressed an interest to establish another plant near Chowdwar.Ipicol officials estimate the likely investment in the sector to be more than Rs 2,000 crore. Ipicol is trying to lure more investment into the sector by highlighting the easy availability of good quality pig iron and steel ingots, good quality pure aluminum ingots, steel flat products (plates, sheets HR and CR) and rounds.

…† he RSB Group already has a technology agreement with Gunther Albert GmbH of Germany for trailer designs and a strategic alliance with Germany-based BPW Axle for axle technology with anti-breaking system, disc brake, etc.

RSB Transmission would invest Rs 430 crore in the next four years to set up a major auto component manufacturing plant near Cuttack in Orissa, Behra said adding Orissa Chief Ministger Navin Patnaik would lay the foundation stone of the casting and forging plant on August 30.

“Orissa government has assured us to provide 270 acres of land while we have acquired 90 acres land,” he said.

Economic times reports that Some Punjab based industries plan to invest in Orissa.
The reports state that Arti Steel has already invested 450 crore out of a total investment of 900 crores. The first step in Auto parts investment is being planned with GNA Axle.

Even Hero Honda , bicycle manufacturer plans to invest in Orissa. Hopefully, this will be the start of a trend. Excerpts:

“Orissa’s rich natural resources are now luring the industries in Punjab, with the an auto parts maker and steel manufacturer committing separate investments to the tune of Rs 960 crore to the state.

While Ludhiana-based Aarti Steels had committed an investment of Rs 900 crore for setting up a half-a-million capacity steel unit in the state, Goraya-based auto parts manufacturer GNA Axle Group will invest Rs 60 crore for manufacturing axle shafts, gears for heavy vehicles.

Leading bicyle maker Hero Cycles is also quite keen on exploring the possibility of making an investment in Orissa.

“We have proposed to invest Rs 60 crore within the next four years in order to set up an auto component manufacturing unit which will cater to export as well as domestic markets,” GNA Axle Group Director Randeep Singh said.

The Orissa government has promised to make available 100 acres of freehold land to the company at a token amount of Rs 2 lakh per acre. In addition to it, the government has also offered power at a rate of Rs 2.90 per unit without excise duty.

“We set up our unit in March 2003 in Orissa after carrying out a survey. The state can offer many benefits in the shape of availability of raw material for steel producing unit like us. So far, we have invested Rs 450 crore in this project while balance will be invested soon,” said Aarti Steels Director Rajeev Mittal.

The unit is is expected to be completed next year, he added.

“In Orissa, besides getting cheap power, we will also be in a position to get raw material at a much cheaper rate as we will be nearer to the source of raw material,” reasoned Singh while adding that with this new unit, our freight cost would also get reduced significantly for supplying our finished products to domestic as export markets.

Leading bicycle company Hero Cycles is also quite keen on exploring the possibility of making an investment in Orissa. “We will certainly explore the possibility of investing in that state which is full of natural resources,” Hero Cycles, Director Vijay Munjal said.

Recently, a high powered delegation including Commissioner-cum-secretary, Department of Industries, Orissa, was in Punjab for inviting industrialists to tap the investment opportunities here.“